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Mandarini Mandarini
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7 years ago
Elaine loaned her brother, Mike, $175,000 to purchase a new home. Elaine does not charge Mike any interest on the loan. What are the tax consequences to Elaine and Mike?
A) Elaine is treated as having made a gift of the forgone interest on the $175,000 loan to Mike.
B) Elaine only has to impute interest on $75,000 of the loan to Mike.
C) If Mike has no net investment income, Elaine does not have to treat the forgone interest as a gift.
D) Mike can deduct the interest that he is deemed to have paid Elaine.
Textbook 
Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts

Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts


Edition: 27th
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genflynngenflynn
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7 years ago
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More solutions for this book are available here
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We have the most crude accounting tools. It's tragic because our accounts and our national arithmetic doesn't tell us the things that we need to know.

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Mandarini Author
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6 years ago
Wow you guys are great!!!!!!!!!!!!!!

always correct
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